Short answer. If you run the business alone, you register a sole proprietorship. If two or more people own it, you register a partnership. Both are registered with SSM (Suruhanjaya Syarikat Malaysia), and the online route is EzBiz Online. The SSM fees are small, so the real decision is not cost: it is whether you want a company instead. If you are still choosing, read our sole proprietor vs Sdn Bhd guide first and return here once you have decided.
Every fee and rule below comes from SSM's own pages, linked under each section, and is as at the date this page was last updated (shown in the byline). SSM can change them, so check the SSM page before you pay.
Sole proprietorship or partnership?
The test is the number of owners. SSM's page "Starting a Sole Proprietorship/Partnership" describes a partnership as a business owned by two or more persons but not exceeding 20 persons. A business with a single owner is a sole proprietorship.
| You are | Register as |
|---|---|
| One person, trading alone | Sole proprietorship |
| Two or more people, sharing the business | Partnership |
| More than 20 persons | Not a partnership under SSM's description; look at a company |
Source: SSM, Starting a Sole Proprietorship/Partnership.
Neither type is a company. A Sdn Bhd is a separate legal entity under the Companies Act 2016, which is the main reason owners move to one later. Our Sdn Bhd registration guide covers that route.
What it costs
SSM's table of fees for business registration lists these fees per year:
| Item | Fee |
|---|---|
| New registration, personal name | RM30 per year |
| New registration, trade name | RM60 per year |
| Each branch | RM5 per year for each branch |
SSM's fee page carries a "last updated" note from 2018. Treat the amounts above as SSM's published table and confirm them on the payment screen. SSM's table also lists charges for changing business particulars and for renewal, which we have not copied here.
Source: SSM, Table of Fees.
The EzBiz Online route
EzBiz Online is the SSM page that covers online business registration. Three things on it are worth knowing before you start:
- Owner age. SSM states the owner must be aged between 18 years and above.
- Who can use it. SSM states the owner must be a Malaysian Citizen or Permanent Resident of Malaysia.
- Service target. SSM's client charter for EzBiz Online is within 1 working day (24 hours) after the application is received.
SSM publishes user guidelines on the same page for the documents it asks for, how a business name is approved and the screens. Follow its current guideline for a new registration rather than a summary written by someone else, including us.
Source: SSM, EzBiz Online.
If you would rather ask a person, SSM publishes its contact centre details on its own site. We do not print them here, so you always get the current ones.
Renewal: the limits
SSM's Business Renewal page sets two limits you can plan around:
- When. An application can be made at any time before the expiry date up to twelve (12) months after the expiry date.
- How long. Renewal is for a period of one (1) year and not more than five (5) years.
Put the expiry date in your calendar when the registration is approved. Letting it run into the twelve-month window is allowed by SSM's page. SSM's page does not say what happens to the business during that gap, so do not rely on it.
Source: SSM, Business Renewal.
What registration does not settle
Registering the business is one task. These are separate:
- Income tax. A sole proprietor's business profit is taxed with their personal income. Start with our freelancer and self-employed EPF and tax guide and the income tax calculator.
- Side income. If the business began as a side hustle, side income tax for freelancers explains when to declare it.
- E-invoicing. Whether you must issue e-invoices is a separate test. See the e-invoice guide.
- SST. Whether you must register depends on what you sell and your turnover, not on your SSM type. See SST registration for small businesses.
- Company tax. If you later incorporate, a company pays tax on its own profit. What LHDN's company tax pages say sets out the rates.
When to think about a Sdn Bhd instead
Choose a company when you want liability separation, outside owners or investors, or the option to keep profit inside a business that pays its own tax. A company also brings more admin: a company secretary, an annual return and beneficial ownership reporting. Those are the costs to weigh against the lower SSM fees here. The structure comparison works through the numbers with a worked example.
If your side income is small and you are only testing the idea, a sole proprietorship is the lighter way to begin, and you can incorporate later.
This guide is general information, not legal or tax advice. SSM's EzBiz Online page and its contact centre are the places to ask about documents, name applications and fees for changing business particulars.